Understanding Money Supply
Interactive Video
•
Business
•
9th - 10th Grade
•
Practice Problem
•
Hard
Jennifer Brown
FREE Resource
5 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the money supply defined as?
The total quantity of money circulating in the economy
The total quantity of investments in the economy
The total quantity of goods in the economy
The total quantity of services in the economy
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is included in M1?
Institutional money market funds
Traveler's checks
Time deposits over $100,000
Savings deposits
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What additional elements does M2 include beyond M1?
Retail money market funds
Time deposits over $100,000
Term repurchase agreements
Institutional money market funds
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is included in M3 that is not in M2?
Retail money market funds
Time deposits over $100,000
Demand deposits
Traveler's checks
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why did the Federal Reserve stop reporting M3?
M3 was more liquid than M1
M3 was too broad to measure
M3 did not provide additional relevant information beyond M2
M3 was too narrow to be useful
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